Why Is Aer Used
An Annual Equivalent Rate (Aer) Is Used in the Uk as an Overall Rate to Make Comparisons Between Saving Accounts Only. It Is Similar to Compound Interest in...
An annual equivalent rate (AER) is used in the UK as an overall rate to make comparisons between saving accounts only. It is similar to compound interest in that the first time interest is calculated, the value of the interest is combined with the original amount.
Why do banks pay interest to savers?
Why do banks pay interest on my savings? … Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. After paying for various costs, the banks pay money on savings deposits to attract new savers and keep the ones they have.
Is Aer paid monthly or annually?
Is AER Paid Monthly or Annually? Interest will be paid out in accordance with the agreement you’ve got with your bank. The AER allows you to work out what the total interest that you earn in a year will be.
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